Iceland’s economic collapse fires a 'saucepan revolution'

Amid rowdy protests, the PM is bowing out

The normally placid middle class of Iceland is in revolt, taking to the streets in protest at their politicians, bankers, and the financial meltdown.

Since the country's banks went bust in October, unemployment has soared and is heading towards 10% and the currency has collapsed, losing more than one third of its value in a matter of months. Inflation is close to 20% and interest rates have hit 18%. Last week people decided enough was enough. When MPs gathered after their winter break on Tuesday, they were met by a large crowd creating a cacophony with everything from pots and pans to empty paint cans, whistles and musical instruments.

"We have to wake up the government that seems to be fast asleep," said Audur Ketilsdottir, while pounding a pot with a large spoon. She has been unemployed since losing her job at a newspaper soon after the economic collapse began.